Mexico and US Assess Whether an Interim Trade Deal Can Be Reached Before November 3 Midterms, Sheinbaum Says Talks Are Advancing

Mexican President Claudia Sheinbaum said on Wednesday that trade talks with the United States were advancing as both sides assessed whether an interim bilateral agreement could be reached before the November 3 midterm elections — a deal that would give Mexico relief from US tariffs on autos, steel and aluminium, while US talks with Canada, the third USMCA partner, have faltered, Reuters reported.

Awaaz Punjab Investigations Desk28 October 20264 min readRead in all 3 languages

Mexican President Claudia Sheinbaum said on Wednesday that trade talks with the US were advancing as both sides assessed whether an agreement could be reached before midterm elections on November 3, Reuters reported from Mexico City.

Source: Reuters via KTWB

The talks aim to achieve an interim bilateral agreement that could give Mexico relief from US tariffs while addressing Washington's concerns over issues including automotive content and Chinese investment. 'In areas where we can reach an agreement and strengthen both countries, we are making progress,' Sheinbaum said during her daily morning press conference.

Mexico continues to seek a 'significant reduction' in US tariffs on its auto, steel and aluminium industries, Sheinbaum said. Those sectors remain among the central unresolved issues in the negotiations. There is no formal deadline, but officials in both countries are hopeful of a deal before the November 3 elections, when Republicans risk losing Congress, Reuters reported in its updated account.

Source: Reuters via KRRO

USMCA in annual reviews, Canada talks collapsed

The existing USMCA agreement remains in force, but Washington declined in July to extend it for another 16 years, sending the pact into annual reviews and leaving unresolved broader issues including rules of origin, China, labour and environmental provisions, Reuters reported. Mexico's negotiations with Washington have continued even as US talks with Canada, the third member of the North American trade pact, have faltered.

Mexico's push for a deal follows the collapse of US-Canada trade talks last month, which set off a tariff dispute that includes new US import bans on Canadian alcohol, motorcycles and dairy, Reuters reported. Canada has vowed dollar-for-dollar retaliation, and the fallout has reinforced Mexico's strategy of cooperating with Washington instead of confronting it, in hopes of getting tariff relief.

Why it matters for Canada and truckers

North American auto, steel and aluminium supply chains run through all three USMCA countries. If Mexico wins tariff relief bilaterally while Canada stays in a retaliation dispute, cross-border freight, parts flows and pricing for Canadian and Punjabi diaspora trucking businesses could shift with it. No deal has been signed — both sides are still only assessing whether one is reachable before November 3.

Sources

Reuters (Raul Cortes) via KTWB — Mexico, US assess viability of trade deal before midterms, 28 Oct 2026 https://ktwb.com/2026/10/28/mexico-us-assess-viability-of-trade-deal-before-midterms/

Reuters via KRRO — Mexico, US assess viability of trade deal before midterms (updated version, published 16:12 UTC, no formal deadline; officials hopeful of deal before Nov 3), 28 Oct 2026 https://krro.com/2026/10/28/mexico-us-assess-viability-of-trade-deal-before-midterms/

President Claudia Sheinbaum's daily morning press conference, Mexico City, 28 Oct 2026 — primary source for her statements, as reported by Reuters